Berlin : In a surprise move, India-born Anshu Jain resigned as the Co-CEO of Germany’s biggest bank – Deutsche Bank – losing the top spot to former UBS banker John Cryan, who will serve as the Co-CEO and will become the “sole CEO” after May 19. Jain is the second Indian to resign from a global bank after Vikram Pandit who stepped down as the CEO of Citigroup in 2012.
He is also the second Indian to quit a German industry giant after reaching one of the top spots in the leadership ladder after Infosys CEO Vishal Sikka, who resigned as the Executive Board Member of the software major SAP in 2014.
The twin resignations follow a series of financial wrong moves and regulatory penalties at the Frankfurt-headquartered bank. Off late, the pressure has intensified, with an increasing number of shareholders and employees losing confidence in the bank’s performance and the management team’s turnaround plans.
The Germany-based bank appointed former UBS banker Cryan as the Co-Chief Executive Officer, effective next month, and he will succeed the existing CO-CEOs Jurgen Fitschen and Jain.
“The appointment of Cryan as Co-CEO follows the decision of Fitschen (66) and Jain (52), Co-CEOs, to step down early from their roles,” Deutsche Bank said in a statement.
Jain will step down on June 30 and the Supervisory Board has asked him to remain as a consultant with Deutsche Bank.
The Supervisory Board has asked Fitschen to remain in his current role until the conclusion of the Annual General Meeting on May 19, 2016, to help ensure a smooth transition, it said. “Their contracts were due to run through to March 31, 2017. Upon Fitschen’s departure on May 19, 2016, Cryan will become sole CEO,” the bank said.
Deutsche Bank said its Supervisory Board decided at an extraordinary meeting today to appoint Cryan (54) to the position of CO-CEO.
On his stepping down, Jain said: “It has been 20 years since I came to work at Deutsche Bank and it has been an extraordinary time. Over the past three years, I have been afforded the privilege and honour to lead this great institution together with Jurgen.”
He further said: “In our time as the bank’s leaders, we have boosted capital, reduced exposures and risk and invested significantly in technology, control and compliance capabilities.”
Most significantly, he said, we have kept the clients happy and the bank’s revenues growing while reshaping and strengthening the bank.
“I believe that with Strategy 2020 in place, which puts the bank’s future on a strong track, it is right for the bank and for me to have new leadership at this time. I will be forever honoured to have served here and I am convinced that the future of the bank is bright and in very good hands,” he added.
